Famous Fortune Fights!
by Andy & Danielle Mayoras

Philip Seymour Hoffman

Sure the holidays are a fun time for families to sit around talking about what happened on the latest episode of The Walking Dead or how granddaughter Mary is doing in dance class. But they are also a great time to have the important -- yet often difficult -- conversations about estate planning. What happens when Mom dies? Does anyone know where Dad kept his will? Did they ever transfer the investment accounts into their revocable living trust like they were supposed to?

Many families don't ask these tough questions ... especially when dynamics are strained, like in many second-marriage families or when siblings don't get along well. It certainly isn't easy to blurt out after passing the gravy, "Hey Dad, does your will put me or your wife in charge of your estate?"

But these conversations are important. When the proper estate planning isn't done, it's the family members left behind who pay the price, often with bitter, ugly, and costly probate court battles. They happen to families all across the country on a daily basis, from those of modest wealth to the very rich.

The 2014 Oscars are complete. Trial & Heirs looks back at past Oscar winners like Philip Seymour Hoffman, Elizabeth Taylor, Heath Ledger, Frank Sinatra, and Marlon Brando. Their estates illustrate important estate planning lessons that everyone can benefit from — even those who aren’t walking the red carpet at the Oscars.

1. Philip Seymour Hoffman Estate Planning Lesson: You Can Be Creative With Your Will or Trust

There were many mistakes and pitfalls with Philip Seymour Hoffman’s estate (including no estate tax planning and his failure to use a revocable living trust, as we discuss in our article). But, Hoffman — whose portrayal of Capote earned him the Best Actor Oscar in 2006 — didn’t do everything wrong.

He gets credit for a key component of estate planning that many people overlook: creativity. Estate planning is not meant to be “fill in the blank” or “one-size fits all.” You can use your will or trust to pass along your goals, values and moral beliefs. Most people think wills and trusts only pass along assets to the next generation, but they can do so much more.

Hoffman’s will highlights this. He included language in his will to express his strong desire that his son be raised in Manhattan, Chicago, or San Francisco, or at least visit one of those cities twice each year, to be exposed to the culture, arts and architecture that those cities offer. Hoffman could have taken it a step further, especially through a well-drafted trust, but we applaud the late actor for thinking outside the box.

Oscar-winning actor, Philip Seymour Hoffman, died on February 2nd from a drug overdose. Recently, his long-time girlfriend and mother of his three children, Marianne O’Donnell, filed to open Philip Seymour Hoffman’s estate and to probate his will. While there are many lessons that can be drawn from his will, there are four main estate planning pitfalls that serve as important lessons:

1. Philip Seymour Hoffman Should Have Created A Revocable Living Trust.

The reason that Hoffman’s will is public and available for anyone to read (you can click here to read it for yourself), is because he relied on a will — and only a will — for his estate plan. For most people with even a modest estate, revocable living trusts are critical.

Why? When properly used, they help families avoid the costs, aggravation, and delays caused by the probate process. Probate court proceedings are public record (meaning anyone can read the will — even your nosy neighbor!), and are expensive, difficult to maneuver without an attorney, and often are breeding grounds for family fights.

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Legal Disclaimer

Legal Disclaimer

Nothing in this blog should be relied on as legal advice. The information contained herein does not create an attorney/client relationship. The articles posted are intended for entertainment and general information purposes only. Laws vary state by state. Anyone seeking legal advice for a specific situation should consult a qualified probate lawyer or similar qualified professional in the appropriate state.